living trust - Investment & Finance Definition

A
revocable trust whose terms become effective while the donor is still alive.
Although the trust is the legal owner of property, investments, or assets in
the trust, the creator of the trust (called a grantor) does not give up any control over the
assets and can still buy or sell them. Those assets are used for the benefit of
another person, called a beneficiary. A
trustee and a successor trustee manage the trust. A living trust in many ways
resembles a will. It includes instructions and details for handling the
writer’s estate at death. However, unlike a will, it does not go through
probate and prevents the court from
controlling the deceased person’s assets. Also called inter vivos trust.